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Ciena's (CIEN) WL6e Solution Utilized by Southern Cross

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Ciena (CIEN - Free Report) announced that its WaveLogic 6 Extreme (WL6e) technology is being leveraged by an independent international capacity provider in Australasia — Southern Cross — to enhance its Southern Cross (SX) NEXT expansion from Sydney to Los Angeles.

The SX NEXT cable represents a high-performance system, marking the initial phase of replacing the original systems by 2030. WL6e enables the deployment of 800 Gb/s wavelengths across the extensive 12,500-plus km span and delivers reliable, energy-efficient, and high-bandwidth connections. This supports Southern Cross in offering services like the recently launched 400GbE services.

Ciena’s WL6e supports 1.6 Tb/s single-carrier wavelengths for metro networks and 800 Gb/s services over long distances, added Ciena. Also, the WL6e significantly reduces watts per bit and requires less space compared to the previous generation. This technology empowers Southern Cross' network to swiftly adapt to fluctuating demands driven by cloud-based services, content, and emerging AI applications. 

Ciena is a leading provider of optical networking equipment, software and services.  It continues to benefit from increased network traffic and demand for bandwidth.  The company has been diversifying its footprint in data center connectivity.

Fiber Deep technology represents a significant opportunity for the company driven by the strong adoption of its products among all major cable operators in the global market. The company expects its total addressable market to grow from $13 billion in 2020 to more than $22 billion over the next several years.

In January, the company announced that its GeoMesh Extreme submarine network solution is being utilized by BW Digital to launch commercial 400GbE services on the Hawaiki Transpacific Cable. The Hawaiki cable spans about 13,540km and connects multiple locations, including Australia, New Zealand, American Samoa, Hawaii and the U.S. West Coast.

Prior to that, the company announced that Australia-based SUBCO was deploying its GeoMesh Extreme, powered by WaveLogic 5 Extreme in the 6500 Packet-Optical Platform, to boost the capacity of Oman Australia Cable (OAC). OAC is a 9,800km submarine cable linking Muscat, Oman and Perth, Australia.

CIEN currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 1.4% compared with the sub-industry’s growth of 3.7% in the past year.

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Stocks to Consider

Some better-ranked stocks worth considering in the broader technology space are Woodward (WWD - Free Report) , NETGEAR (NTGR - Free Report) and Watts Water Technologies (WTS - Free Report) . NETGEAR and Woodward sport a Zacks Rank #1 (Strong Buy), while Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Woodward’s 2023 EPS has inched up 6% in the past 60 days to $4.94. WWD’s long-term earnings growth rate is 15.3%.

Woodward’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average surprise being 14.7%. Shares of WWD have gained 31% in the past year.

The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the past 30 days.

NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have lost 29.5% in the past year.

The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08.

WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.

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